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In case of high fixed operating cost, co...

In case of high fixed operating cost, company should prefer debt or equity?

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Equity.
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Krishana Pvt. Ltd. Is facintg the shortages of long-term finance as it is a period of depression in the economy. The experts were consultd determine the source of finance the company should raise. One financial advisor, Mr. Ram, adviser that the company should use such a security on which it has a tax advantage and there is no dilution of controle of the shareholders. another finance specialist, Mr. Shiv advised that the company should not issued any debt or equity security but raise such a source of long-term finance which can be redeemed in easy instalments. Ouoting the relevant lines form the above para, identify and exaplain the source of finance sugested by the two specialists, Mr. Ram and Mr. Shiv

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